Smart Saving and Investment Strategies

Marybeth Ulri introduces the concepts of saving and investing, emphasizing the importance of saving a portion of income and the benefits of starting early. She explains the difference between savings accounts and investment options like stocks, mutual funds, and bonds, highlighting the potential risks and returns. The video concludes with a reminder to practice smart money management and complete the accompanying worksheet.

What does 'pay yourself first' mean in the context of savings?

• Spending all your income before saving

• Automatically saving a portion of your income

• Paying off all debts before saving

• Investing all your income in stocks

What percentage of your income do money experts suggest you should save?

• 10 to 20 percent

• 5 to 10 percent

• 30 to 40 percent

• 20 to 30 percent

Why is it beneficial to save early and often?

• To accumulate wealth over time

• To avoid opening a bank account

• To spend more on luxury items

• To avoid paying taxes

Which of the following is a safe way to save your money?

• Investing in high-risk stocks

• Putting money in a savings account

• Buying luxury goods

• Gambling

What is a mutual fund?

• A professionally managed investment pooling money from shareholders

• A government bond

• A type of savings account

• A personal loan

Which investment option represents fractional ownership in a company?

• Bonds

• Mutual funds

• Stocks

• Savings accounts

What is a potential risk of investing in stocks and mutual funds?

• No risk involved

• Fixed interest rates

• Loss of part or all of the investment

• Guaranteed returns

How can the value of bonds be affected?

• By the amount of savings

• By the number of shareholders

• By changes in interest rates

• By changes in stock prices

What is a key aspect of smart money management?

• Avoiding any form of savings

• Saving a portion of your income

• Spending all your income

• Investing in high-risk options only

Why is it better to save even a little now than nothing at all?

• Because it allows for immediate spending

• Because it helps build a habit of saving

• Because it avoids paying taxes

• Because it guarantees high returns